Security Matters seals mint of a deal

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Emerging tech company Security Matters (ASX:SMX) has had a price target of $1.13 per share placed on it, hot on the heels of news that it has been tapped by Perth Mint to develop a bespoke verification solution.

It told the market that today that it had signed a deal with Perth Mint to begin “full-scale development” of a method to track and trace gold from the mine, to the refinery, and finally into final products created by the Perth Mint.

This will make Perth Mint the first in the world to have this kind of authentication.

Security Matters had previously been working with Perth Mint under a memorandum of understanding struck in May last year — but the latest news gives the green light for the company to deliver a bespoke solution from tracking minerals.

But Security Matters CEO Haggai Alon said the Perth Mint deal was just a glimpse of things to come.

“The signing of this agreement represents the first step of us creating a global syndicate, on which we are now focused. It also demonstrates our ability to execute and deliver on our business model,” he said in a statement.

“For us gold is the starting point and we continue to focus on the ethical mining sector and an avenue for growth.”

Jindalee Partners, which played a vital role in bringing Perth Mint and SMX together, said it was pleased to see the deal get to this stage.

“The Security Matters technology platform has the potential to transform a number of different industries. The importance of the gold sector to the Australian economy and the Perth Mint’s leading position globally makes it an ideal partner for the company,” director at Jindalee, Harry Karelis, said.

“This partnership has the potential to transform the tracking and tracing of precious metals ensuring their authenticity and provenance as they move around the world.”

The potential for SMX’s tech to change the gold industry for the better was also something alluded to by Perth Mine CEO Richard Hayes.

“We are delighted to be involved with SMX in developing cutting edge technologies that will enhance supply chain integrity in the global metals industry,” he said.

“Consumers globally are looking for greater transparency in how the products they buy have come to market.

“The Perth Mint is committed to the highest ethical sourcing standards, and this initiative simply reinforces our commitment to and support for the Australian gold mining industry.”

“In our view, this validates SMX’s investment case in several ways,” the research house wrote.

“Firstly, a company of this stature entering into formal agreements with a small company such as SMX signals that the technology is real, applicable and monetizable. Furthermore, we believe this agreement presents a clear way to revenues for SMX if and when the feasibility studies are concluded successfully.

“In other words, we believe this deal is a major step forward for SMX in its commercial rollout.”

More on Security Matters

Security Matters is hoping to provide a ‘track and trace’ solution to the market by developing a way to ‘mark’ physical objects without altering their physical state.

It would then be able to read the markers using its own technology, and make a record on blockchain enabled legder — giving end users surity that the object hadn’t been tampered with in transit.

While much of the technology remains under wraps, the calibre of companies SMX has been able to progress trials with speaks volumes about its prospectivity.

For example, in February it revealed that it had become the only company in the world proven to be able to provide a ‘track and trace’ solution for the electronics manufacturing industry.

It has also tied up trials with identity solutions provider Veridos as it attempts to prove up its tech solution in several industries where verification of the authenticity of physical items is crucial.

This content is produced by Star Investing in commercial partnership with Security Matters. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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